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Build Your India Engineering Team via EOR (No Entity Setup)

Reviewed by CA and CS Team, Patron Accounting LLP ICAI & ICSI Registered| 15+ Years Experience| Last Updated: Verify Credentials →

Documents: Offer letter, India-compliant contract, PAN, Aadhaar, UAN onboarding

Fees: Starts at Rs 8,000 per employee per month plus 18 percent GST

Eligibility: Foreign companies hiring 1 to 50 engineers in India

Timeline: Compliant offer in 5 to 7 working days, payroll live in 10 to 14 days

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Real Stories from Real People

Hear how teams across industries use Patron to save time, cut costs, & stay in control.

“

Patron onboarded 14 platform engineers across Bangalore and Hyderabad in 11 calendar days. Saved us four months and Rs 22 lakh versus subsidiary route. Zero PF, ESI, or TDS escalations in the first 12 months.

Daniel Chen

VP Engineering, US Series B SaaS

★★★★★

2 months ago

“

Very professional and efficient. Tax Expert was professional and prompt with payroll setup. UAN, ESIC, salary account all live before my joining date. Form 16 was issued before 15 June without any follow-up.

Aarav Sharma

Senior Software Engineer, Bangalore

★★★★★

3 weeks ago

“

Got required documents within 4 hours of every request. Patron's CA team handled multi-state PF and ESI across Pune and Hyderabad without a hitch. CTC structuring lifted engineer take-home by ~10 percent.

Emma Mitchell

Co-founder, UK AI Startup

★★★★★

1 month ago

“

Switched from a global EOR platform to Patron and our cost per engineer dropped 32 percent. The CA-led model means PF disputes and tax notices get handled in-house, not escalated to a chatbot.

Ravi Venkatesh

Engineering Manager, Hyderabad

★★★★★

6 weeks ago

“

Form 24Q quarterly acknowledgements arrive on time. Monthly compliance dashboard makes our finance team's audit prep painless. Smooth GCC transition path was the deciding factor for us.

Lukas Müller

CTO, EU Fintech

★★★★★

2 weeks ago

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Overview What Is EOR Who Needs This What We Deliver Onboarding Process Documents Checklist Common Challenges Fees & Pricing Time Taken Why Patron EOR vs Subsidiary FAQs

EOR for India Engineering Teams: Compliant Hiring Without an Indian Subsidiary

📌 TL;DR - EOR Engineering Team Services at a Glance

An Employer of Record in India lets foreign companies legally hire engineers in Bangalore, Hyderabad, Pune, and Delhi NCR without setting up an Indian entity. The EOR signs the local contract, runs payroll, deposits PF and ESI, deducts TDS, and absorbs Permanent Establishment exposure while you manage the engineer day to day.

EOR India engineering team services give global employers a compliant entry route into India's largest tech talent pool without the 6 to 12 month delay of subsidiary incorporation. India produces over 1.5 million engineering graduates each year, with Bangalore, Hyderabad, Pune, and Delhi NCR concentrating the bulk of senior software, data, and platform talent. The Employer of Record sits between you and the engineer as the contractual employer of record, while you keep complete control over assignments, performance, and intellectual property.

Patron Accounting LLP provides India-side EOR support backed by 15+ years of CA-led payroll, PF, ESI, gratuity, and TDS compliance work. Foreign companies headquartered in the United States, the United Kingdom, the European Union, Singapore, and Australia rely on us to keep monthly payroll, statutory filings, and labour code obligations spotless while their engineering teams stay focused on shipping product.

Content is reviewed quarterly for accuracy.

What Is an EOR for India Engineering Teams

An Employer of Record (EOR) for India engineering teams is a locally registered Indian entity that legally employs your engineers under the Code on Wages 2019, the Code on Social Security 2020, and the Income Tax Act 1961, while you direct their work day to day.

The EOR signs the India-compliant employment contract, files monthly Provident Fund returns under the Employees Provident Funds and Miscellaneous Provisions Act 1952, deposits Employees State Insurance under the ESI Act 1948, deducts and remits TDS under Section 192 of the Income Tax Act 1961, and accrues gratuity at 4.81 percent of monthly basic wages under the Payment of Gratuity Act 1972. The model removes Permanent Establishment exposure for the foreign parent company because no agent in India concludes contracts on its behalf.

Foreign hirers retain authorship of work product, set goals, run sprint reviews, and grant equity from their home jurisdiction. The EOR carries every Indian statutory liability, from minimum wage adherence under state-notified schedules to F&F settlement on exit.

Key Terms for EOR Engineering Team:

EOR (Employer of Record): Third-party Indian company that becomes the legal employer for payroll, PF, ESI, and TDS while client controls work.
PEO (Professional Employer Organization): Co-employment model where both parties share legal responsibility. Less common in India because Indian labour law does not formally recognise co-employment.
GCC (Global Capability Centre): Wholly-owned Indian subsidiary built by a foreign parent to house captive engineering. Requires entity setup, board, FDI compliance, transfer pricing.
Branch Office: RBI-approved liaison or branch of foreign company. Allowed limited revenue activity. Triggers Permanent Establishment for tax purposes.
Independent Contractor: Self-employed engineer invoicing the foreign client directly. High misclassification risk under Indian labour codes if hours, tools, and supervision look like employment.

Compliance Backbone Labour Codes 2025 + Income Tax Act 1961

Who Should Use EOR India Engineering Team Services

EOR India engineering team services are designed for the following hiring profiles. Foreign company size and engineering team size jointly drive the choice between EOR, GCC subsidiary, and contractor engagement.

Foreign Company Profile	Team Size	Recommended Action
United States, United Kingdom, EU, Singapore, Australia parent	Hiring 1 to 50 engineers in India	EOR is the fastest compliant route. Subsidiary becomes economical at 25+ engineers.
Series A or Series B funded startup	First 1 to 10 India engineers	EOR avoids Rs 50 lakh to Rs 1 crore subsidiary setup cost.
Mid-stage SaaS / fintech / AI company	10 to 30 distributed engineers	EOR with multi-state PF/ESI registrations. Patron handles 28 state-specific Shops and Establishments Acts.
Late-stage enterprise testing India market	Pre-GCC pilot of 5 to 15 engineers	EOR for 12 to 18 months, then transition to wholly-owned subsidiary with employee transfer.
Foreign engineering services firm	Project-based engineers for 6 to 24 months	EOR fixed-term contracts under Industrial Relations Code 2020 with pro-rata gratuity after 1 year.

Statutory deadlines that trigger EOR engagement: PF deposit by the 15th of each succeeding month under the EPF Scheme 1952; TDS deposit by the 7th under Rule 30 of the Income Tax Rules 1962; ESI by the 15th under ESI (General) Regulations 1950. A single late deposit attracts 12 percent annual interest plus damages of 5 to 25 percent under Section 14B of the EPF Act.

What Patron Accounting Delivers

Service	What We Do
India-compliant Employment Contract	Drafted under the Industrial Relations Code 2020 and applicable state Shops and Establishments Act. Includes IP assignment, non-solicit, probation up to 6 months, and notice period.
Monthly INR Payroll Run	CTC structuring (Basic, HRA, Special Allowance, LTA, NPS), pay slip generation, bank file upload, salary credit by the 1st working day.
PF, ESI, Gratuity, Professional Tax Compliance	Monthly PF and ESI challans on the EPFO Unified Portal and ESIC portal, gratuity accrual at 4.81 percent, state-wise professional tax up to Rs 2,500 per year in Maharashtra and Karnataka.
TDS Deduction and Form 24Q Filing	Monthly TDS deposit by the 7th, quarterly Form 24Q via TRACES, annual Form 16 issue to engineers by 15 June.
Engineer Onboarding and Offboarding	UAN allocation, ESIC IP number, bank account opening, F&F settlement within 30 days of last working day with leave encashment and gratuity payout.
Salary Benchmark and CTC Optimisation	City and stack-specific compensation data refreshed quarterly. Tax-efficient CTC design boosting take-home by 8 to 12 percent.

Our Process

EOR Onboarding Procedure (8 Sequential Steps)

Patron Accounting's EOR onboarding follows the sequence below. Steps cite the relevant Act, Section, or Form so finance and legal teams can audit each handoff.

Step 1

Scope and CTC Sign-off

Foreign client shares role, location, and gross CTC. Patron returns city-benchmarked offer with statutory burden. (1 working day.)

Role + city locked City benchmark 1 day

Scope Locked 01

Step 2

Employment Contract Drafting

Patron drafts India-compliant offer letter under Industrial Relations Code 2020 and state Shops and Establishments Act. IP assignment to foreign parent included. (2 working days.)

IRC 2020 compliant IP assigned 2 days

Contract Drafted 02

Step 3

Background Verification

Standard BGV: PAN, Aadhaar, last 2 employments, education. Required by RBI KYC norms for salary account opening. (3 to 5 working days.)

PAN + Aadhaar Education check 3-5 days

BGV Cleared 03

Step 4

UAN and ESIC Allocation

Patron registers the engineer on EPFO Unified Portal (Universal Account Number) and ESIC portal (Insurance Number). (1 working day.)

UAN issued ESIC IP 1 day

Statutory Live 04

Step 5

Bank Account and Tax Setup

Salary account opened with HDFC, ICICI, or Axis. Form 12BB (investment declaration) and Form 16 setup under Rule 26C of Income Tax Rules. (2 working days.)

Salary account Form 12BB Rule 26C

Account Open 05

Step 6

First Payroll Run

CTC processed: Basic, HRA, Special Allowance, NPS, deductions of PF 12 percent (employer) + 12 percent (employee), ESI 3.25 percent + 0.75 percent, TDS under Section 192. (Day 1 of pay cycle.)

CTC processed PF + ESI TDS Sec 192

Payroll Live 06

Step 7

Statutory Deposits

PF and ESI by the 15th, TDS by the 7th, Form 24Q quarterly via TRACES. Late deposit triggers Section 14B EPF Act damages. (Monthly.)

PF/ESI 15th TDS 7th Form 24Q

Deposits Filed 07

Step 8

Compliance Reporting to Foreign Parent

Monthly PDF dashboard: payroll register, statutory challans, leave balances, gratuity accrual. Quarterly Form 24Q acknowledgement copy.

Monthly dashboard Statutory pack Audit-ready

Report Sent 08

Documents Checklist

From Foreign Parent Company

Certificate of Incorporation (notarised + apostilled)
Latest audited financial statements (1 year)
Board resolution authorising EOR engagement
EOR Service Agreement signed by authorised signatory
Job description and CTC budget per role
IP assignment template (or use Patron's standard template)

From Indian Engineer (Onboarding)

PAN card (for TDS under Section 139A of Income Tax Act 1961)
Aadhaar card (mandatory for UAN under EPFO Unified Portal)
Last 2 employer relieving letters and Form 16
Bank account proof (cancelled cheque)
Highest education certificate
Passport-size photograph
Permanent and current address proof
Form 12BB investment declaration (for TDS optimisation)

Common Challenges and How Patron Accounting Solves Them

Challenge	Impact	How Patron Accounting Solves It
PE risk from direct overseas payroll	Indian tax authorities classify direct salary remittance from a foreign HQ as Permanent Establishment under Section 9(1) of the Income Tax Act 1961, triggering 40 percent corporate tax plus surcharge on India-attributed profit.	Patron's EOR sits as the legal employer, breaking the agency link and ringfencing the foreign parent.
Multi-state PF and ESI complexity	Hiring across Bangalore (Karnataka), Hyderabad (Telangana), Pune (Maharashtra), and Delhi NCR means four state-specific Shops and Establishments Acts plus state professional tax ranging from Rs 200 to Rs 2,500 per month.	Patron files state-wise registrations once and runs unified payroll thereafter.
Misclassification of engineer as contractor	An engineer working fixed hours, using employer-issued laptop, and reporting to a foreign manager fails the Industrial Relations Code 2020 test of contractor status. Authorities can demand back PF, ESI, and gratuity for up to 5 years plus 12 percent interest.	Patron defaults every engagement to full employment with PF, ESI, and gratuity from day one.
Three-month notice period in Indian IT	Most Indian senior engineers carry 60 to 90 day notice obligations to their current employer, creating gap pay risk if start dates slip.	Patron front-loads offer rollouts so first payroll lands the moment the engineer joins, with no overlap or gap pay risk.

Fees and Pricing

Fee Component	Amount
Junior Engineer (0 to 3 yrs, CTC up to Rs 12 LPA)	Rs 8,000 per employee per month
Mid-Level Engineer (3 to 7 yrs, CTC Rs 12 to 30 LPA)	Rs 10,000 per employee per month
Senior Engineer / Engineering Manager (7+ yrs, CTC Rs 30 LPA+)	Rs 12,000 per employee per month
Setup Fee (one time, waived for 5+ engineers)	Rs 25,000
Statutory Burden (employer): PF 12%, ESI 3.25% (where wage <= Rs 21,000), Gratuity 4.81%, Bonus, Insurance	18 to 22 percent on gross salary
Patron Accounting Professional Fees (starting)	Starting from Rs 8,000 per employee per month (Exl GST and Govt. Charges)

All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.

Professional service charges for drafting, filing, and representation are separate from the statutory fees. The exact fee depends on the complexity of the case, disputed amount, and number of hearings required. Contact us for a detailed quote.

Get a free EOR Engineering Team consultation - Call +91 945 945 6700 or WhatsApp us. No-obligation assessment.

Time Taken

Stage	Estimated Timeline
EOR Service Agreement signing	1 to 2 days
Engineer offer letter rollout	5 to 7 days from JD share
Background verification	3 to 5 days (parallel)
UAN and ESIC allocation	1 day
First payroll run	Day 1 of next pay cycle, or 10 to 14 days post-joining
Form 16 issue (annual)	By 15 June after FY end
F&F settlement on exit	Within 30 days of last working day per Payment of Wages Act 1936
GCC subsidiary alternative timeline	3 to 6 months for incorporation, GST, EPFO, banking

Pilot to scale path: Most foreign hirers run a 12 to 18-month EOR pilot before deciding on captive GCC conversion. Patron Accounting handles the employee transfer under Industrial Relations Code 2020 with continuity of PF, ESI, gratuity, and seniority.

Key Benefits

Why Use Patron Accounting EOR Over a Global Platform

CA-led compliance, not chatbot tickets

Every Patron engagement is supervised by a licensed Chartered Accountant or Company Secretary. PF disputes, ESI inspections, and tax notices are handled in-house, not escalated to a help desk.

Local authority before audits, not after

Patron has filed 50,000+ statutory returns since 2010 and represented clients before EPFO, ESIC, CBDT, and the Income Tax Appellate Tribunal. Foreign companies inherit that authority on day one.

CTC structuring for take-home, not just compliance

Patron designs Section 17(2) perquisite mix, NPS under Section 80CCD(1B), and LTA per Rule 2B to lift engineer take-home by 8 to 12 percent at zero cost to employer.

Smooth GCC transition when scale demands it

When team crosses 25 engineers, Patron incorporates the wholly-owned subsidiary, files FDI compliance, and transfers staff via the Industrial Relations Code 2020 (successor to Section 25FF, ID Act 1947).

Trusted by Foreign Hirers and Indian Engineers

10,000+ Businesses | 4.9 Google Rating | 50,000+ Documents Filed | 15+ Years of India Compliance

Trusted By

Hyundai, Asian Paints, Bridgestone, and 200+ Indian and foreign-owned employers.

Outcome Proof

A US Series B SaaS company hired 14 platform engineers across Bangalore and Hyderabad in 11 calendar days through Patron's EOR, saving 4 months and Rs 22 lakh versus subsidiary incorporation, with zero PF, ESI, or TDS escalations in the first 12 months.

With offices in Pune, Mumbai, Delhi, and Gurugram, Patron Accounting serves businesses across India - both in-person and remotely.

EOR vs Subsidiary vs Contractor (DIY) Comparison

Parameter	EOR (Patron)	Wholly-owned Subsidiary	Contractor (DIY)
Setup Time	5 to 7 days	3 to 6 months	Same day
Setup Cost	Rs 0 (waived 5+ hires)	Rs 18 to 25 lakh	Rs 0
Monthly Cost per Engineer	Rs 8,000 to Rs 12,000 + GST	Rs 5,000 to Rs 8,000 (after staff hired)	0 (paid per invoice)
PE Risk	None - EOR is local employer	Yes - subsidiary is taxable entity	High - direct foreign payment triggers PE
Statutory Compliance	Patron files PF, ESI, TDS	In-house team or outsourced	Engineer self-files; misclassification risk
IP Assignment	Hard-coded in EOR contract	Direct via subsidiary	Weak - contractor retains rights by default
Break-even Point	Less than 25 engineers	More than 25 engineers	Project-based only
Exit Cost	Per-employee F&F per Payment of Gratuity Act 1972	Subsidiary closure: 12 to 18 months	Termination per contract terms

Related Services from Patron Accounting

EOR engagement integrates with Patron Accounting's broader compliance stack. Foreign hirers commonly bundle the services below.

If you also need 24/7 customer support agents alongside engineering, Patron's EOR India customer support team service runs the same compliance backbone for voice, chat, and email roles with state Shops Act night shift coverage.
If your engineering team grows beyond 25, Patron handles the full payroll services stack inside the new wholly-owned subsidiary.
All EOR engineers are covered under Patron's PF registration filings, with monthly EPFO challans and UAN-linked passbooks.
ESI coverage for engineers earning up to Rs 21,000 per month is set up via Patron's ESIC registration service before first payroll.
TDS on salary under Section 192, Form 24Q filings, and Form 16 issuance run through Patron's TDS return filing 24Q practice.
When the foreign parent transitions to a wholly-owned subsidiary, Patron's FDI compliance team files FC-GPR, annual FLA returns, and CARO transfer pricing reports.

India Engineer Salary Benchmarks (2026, By Hub City)

Salaries below reflect total CTC for full-time engineering roles in 2026. Source: aggregated from Glassdoor, Levels.fyi, Plugscale, and Patron's own placement data across 200+ engagements.

Level	Bangalore	Hyderabad	Pune	Delhi NCR
Junior (0 to 2 yrs)	Rs 8 to 14 LPA	Rs 7 to 12 LPA	Rs 6 to 10 LPA	Rs 7 to 12 LPA
Mid-level (3 to 6 yrs)	Rs 20 to 35 LPA	Rs 18 to 30 LPA	Rs 15 to 25 LPA	Rs 15 to 25 LPA
Senior (6 to 10 yrs)	Rs 40 to 70 LPA	Rs 35 to 60 LPA	Rs 30 to 50 LPA	Rs 32 to 55 LPA
Engineering Manager	Rs 50 to 90 LPA	Rs 45 to 80 LPA	Rs 40 to 70 LPA	Rs 42 to 75 LPA
Staff / Principal	Rs 80 LPA to Rs 1.5 cr	Rs 70 LPA to Rs 1.3 cr	Rs 60 LPA to Rs 1.1 cr	Rs 65 LPA to Rs 1.2 cr

Hub city economics: Bangalore commands a 20 to 25 percent premium over Pune for the same level due to GCC density. Hyderabad has narrowed the gap on Bangalore since Microsoft, Apple, Google, and Amazon expanded their campuses. Pune offers 15 to 20 percent salary efficiency with lower attrition. Delhi NCR (Gurugram, Noida) sees the highest variance because of consulting and BFSI tech demand.

Legal and Compliance Framework (India Only)

Every EOR engagement under Patron Accounting follows the legislation listed below. Foreign-parent counsel can audit each citation against the Act and Section.

Code on Wages 2019

Effective 21 November 2025. Defines minimum wage, timely payment of wages by the 7th of the succeeding month under Section 17, equal remuneration. Replaces Minimum Wages Act 1948, Payment of Wages Act 1936, Equal Remuneration Act 1976, and Payment of Bonus Act 1965. Reference: Ministry of Labour and Employment.

Code on Social Security 2020

Effective 21 November 2025. Consolidates EPF and MP Act 1952, ESI Act 1948, Payment of Gratuity Act 1972, and Maternity Benefit Act 1961. Fixed-term employees are now eligible for gratuity after 1 year (down from 5 years) - directly relevant for project engineers.

Industrial Relations Code 2020

Effective 21 November 2025. Mandatory written appointment letters under Section 6. Notice period, lay-off, and retrenchment provisions. Replaces Industrial Disputes Act 1947, Trade Unions Act 1926, and Industrial Employment (Standing Orders) Act 1946.

Occupational Safety, Health and Working Conditions Code 2020

Effective 21 November 2025. Caps working hours at 8 to 12 per day and 48 per week. Free annual health checkup for workers above 40. Women may work night shifts with consent and safety arrangements.

EPF and MP Act 1952

Employer contributes 12 percent of Basic + DA to PF, with 8.33 percent routed to Employees Pension Scheme on wage ceiling Rs 15,000. Late deposit attracts 12 percent annual interest under Section 7Q plus damages 5 to 25 percent under Section 14B. Reference: EPFO official portal.

ESI Act 1948

Employer contributes 3.25 percent and employee 0.75 percent on gross wages up to Rs 21,000 per month. Penalty for non-payment up to 6 months imprisonment under Section 85. Reference: ESIC official portal.

Income Tax Act 1961, Section 192

Mandatory monthly TDS on salary by the 7th of the succeeding month under Rule 30. Quarterly Form 24Q via TRACES. Annual Form 16 to engineer by 15 June. Failure attracts 1.5 percent monthly interest under Section 201(1A) and disallowance under Section 40(a)(ia). Reference: Income Tax Department.

Payment of Gratuity Act 1972

Gratuity at 15 days wages for every completed year of service, payable on exit after 5 years (or 1 year for fixed-term under Code on Social Security). Capped at Rs 20 lakh. Section 4(6) penalty for delayed payment: 10 percent simple interest. Full legislation: India Code.

Is using an EOR legal in India?

Yes. EOR is fully legal in India. The EOR is a locally registered Indian company that complies with the Companies Act 2013, the Code on Social Security 2020, and the Income Tax Act 1961. Foreign companies engage the EOR via a B2B service agreement, and the engineer is legally employed by the EOR for all statutory purposes including PF, ESI, gratuity, and TDS.

How much does an EOR for India engineering team cost in 2026?

Patron Accounting charges Rs 8,000 to Rs 12,000 per engineer per month plus 18 percent GST, depending on seniority. Statutory employer burden adds 18 to 22 percent on top of gross salary (PF 12 percent, ESI 3.25 percent up to wage ceiling, gratuity 4.81 percent accrual). Global platforms charge USD 199 to USD 700 per month with FX markups. Total cost of employment runs 115 to 125 percent of gross annual salary.

Can a foreign company hire engineers in India without a local entity?

Yes, through an Employer of Record. A foreign company cannot directly run payroll, deduct PF, or deposit TDS in India without a registered Indian entity or PAN. The EOR provides that local entity layer. The foreign company stays the day-to-day manager, owns the work product, and pays the EOR a single monthly invoice in INR or USD.

What is the difference between EOR and PEO in India?

EOR is the legal employer of record - the engineer's contract is with the EOR. PEO is a co-employment model where both client and PEO share legal responsibility. Indian labour law does not formally recognise co-employment, so PEO offerings in India in practice operate as EOR. For foreign hirers, EOR is the correct and only fully compliant model.

How long does EOR onboarding take?

5 to 7 working days from JD share to offer letter, and 10 to 14 days from offer to first payroll. Background verification runs in parallel. Subsidiary incorporation by contrast takes 3 to 6 months for Companies Act 2013 registration, GST, EPFO and ESIC code, and bank account setup.

What is Permanent Establishment risk and how does EOR avoid it?

Permanent Establishment under Article 5 of India's tax treaties and Section 9(1) of the Income Tax Act 1961 means the foreign parent has a taxable business presence in India. Direct employment of Indian staff, signing of contracts in India, or having dependent agents triggers PE and 40 percent corporate tax plus surcharge on India-attributed profit. EOR removes the trigger because the EOR (not the foreign parent) is the employer.

Which Indian city is best for hiring engineers - Bangalore, Hyderabad, Pune, or Delhi NCR?

Bangalore for senior product talent and GCC density. Hyderabad for AI, ML, and big tech captives (Microsoft, Apple, Google, Amazon). Pune for cost-efficient mid-level engineering with lower attrition. Delhi NCR (Gurugram, Noida) for fintech, BFSI, and consulting tech. Patron Accounting supports all four hubs with multi-state PF, ESI, and professional tax registration.

Engineer ko EOR ke through hire karna hai - kaise start karte hain?

Pehla step: Patron Accounting ko +91 945 945 6700 par call kijiye ya WhatsApp message bhejiye. Hum role description, city, aur target CTC lete hain, aur 4 working hours ke andar full quote bhejte hain - including statutory burden, Patron fee, aur total cost of employment. Service Agreement sign hone ke baad 5-7 din me offer roll out ho jata hai.

India me engineering team setup karne ke liye EOR theek hai ya subsidiary?

Pehla 25 engineers tak EOR economical hai - kyunki subsidiary me Rs 18-25 lakh ka one-time cost aur 3-6 mahine ka delay aata hai. 25 engineers ke baad subsidiary cost-effective ban jata hai. Patron Accounting EOR se subsidiary me transition bhi handle karta hai - employees ko Industrial Relations Code 2020 ke under transfer karke.

What happens to PF, ESI, and gratuity when an engineer leaves the EOR?

On exit, the engineer's UAN remains active and PF balance transfers to the next employer or can be withdrawn after 60 days under Paragraph 68N of the EPF Scheme 1952. ESI coverage continues for 6 months post-exit under the Insurance Medical Practitioner scheme. Gratuity is paid within 30 days of last working day under Section 7 of the Payment of Gratuity Act 1972, capped at Rs 20 lakh. Patron processes F&F including leave encashment within 30 days.

Quick Answers

Who can use Patron Accounting EOR? Foreign companies (US, UK, EU, Singapore, Australia) hiring 1 to 50 engineers in India without a local entity.

What does it cost? Rs 8,000 to Rs 12,000 per engineer per month plus 18 percent GST plus 18 to 22 percent statutory burden on gross salary.

How fast does it run? 5 to 7 days to offer; 10 to 14 days to first payroll.

Which laws apply? Code on Wages 2019, Code on Social Security 2020, Industrial Relations Code 2020, Income Tax Act 1961, EPF and MP Act 1952, ESI Act 1948.

Where do you serve? All of India, with hub-city coverage in Bangalore, Hyderabad, Pune, Delhi NCR, Mumbai, Chennai, Kolkata.

What is the break-even versus subsidiary? EOR remains cheaper until you cross 25 engineers in a single India team.

Statutory Deadlines That Cannot Slip

Indian payroll runs on hard, monthly deadlines. A single missed deposit triggers penalty plus interest plus reputational risk with the engineer.

Compliance	Deadline	Penalty
TDS on Salary	7th of next month	1.5 percent monthly interest under Section 201(1A); disallowance under Section 40(a)(ia)
PF (EPF)	15th of next month	12 percent annual interest under Section 7Q; damages 5 to 25 percent under Section 14B EPF Act
ESI	15th of next month	12 percent annual interest; up to 6 months imprisonment under Section 85 ESI Act
Form 24Q (TDS Return)	Quarterly: 31 July, 31 Oct, 31 Jan, 31 May	Late fee Rs 200 per day under Section 234E; penalty up to Rs 1 lakh under Section 271H
Form 16 to Engineer	15 June after FY end	Rs 100 per day per certificate under Section 272A(2)(g)
Gratuity Payment on Exit	Within 30 days of last working day	10 percent simple interest under Section 7(3A) Payment of Gratuity Act 1972

Talk to Patron's CA-led EOR Team: Call +91 945 945 6700 | WhatsApp +91 945 945 6700 | Email contact@patronaccounting.com. Free consultation. No obligation.

Launch Your Compliant India Engineering Team With Patron Accounting

EOR India engineering team services are the fastest, lowest-risk way for foreign companies to access India's engineering talent without subsidiary incorporation. The model collapses time-to-hire from months to days, ringfences Permanent Establishment exposure, and absorbs the entire monthly compliance burden under the Code on Wages 2019, the Code on Social Security 2020, the Income Tax Act 1961, and the EPF and ESI Acts.

Patron Accounting LLP brings 15+ years of CA-led India compliance, four physical offices in Pune, Mumbai, Delhi, and Gurugram, and 200+ Indian and foreign-owned employer engagements to every EOR mandate. Foreign hirers gain a legal employer of record, transparent flat-fee pricing, CTC structuring that lifts engineer take-home, and a defined transition path to a wholly-owned subsidiary when team scale demands it.

10,000+ Businesses | 4.9 Google Rating | 50,000+ Documents Filed | 15+ Years of India Compliance

📞 Call +91 945 945 6700 💬 WhatsApp Us ✉️ Email Us

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Compliance Services That Pair With EOR Engineering Team

Bundle EOR with payroll, PF, ESI, TDS, and FDI services from Patron Accounting for an end-to-end India compliance stack.

Related Services from Patron Accounting

End-to-end statutory and payroll backbone for EOR Engineering Team

TDS Return Filing 24Q

India

FDI Compliance

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Content Created: 07 May 2026 | Last Updated: | Next Review: 07 November 2026 | Reviewed By: CA & CS Team, Patron Accounting LLP

This page is reviewed every 6 months or whenever a Central Rules notification under any of the four Labour Codes, a change in PF or ESI wage ceiling, or an Income Tax Act amendment to Section 192 or Section 9(1) is published. Last reviewer: CA & CS Team, Patron Accounting LLP.